According to the law firm press release, the lawsuit alleges defendants made false and/or misleading statements and/or failed to disclose that: (1) the unaudited condensed consolidated financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015 improperly recognized revenues related to certain DS Healthcare Group customers, which did not meet revenue recognition criteria; (2) the unaudited condensed consolidated financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015 contained certain equity transactions for the periods ended June 30, 2015 and September 30, 2015 that were not in accordance with United States Generally Accepted Accounting Principles and which were also not properly disclosed; (3) Defendant violated his fiduciary duty to DS Healthcare Group and its subsidiaries; and (4) as a result, defendants’ statements DS Healthcare Group’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On July 2, 2016, the Court appointed Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended complaint on November 2.
On May 26, 2017, the parties filed a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on May 31. On September 28, the Court granted final approval of the settlement and entered Final Judgment. On March 9, 2018, the Court issued an Order for distribution of Class Settlement funds.